Survey: 86% of Suppliers Have Confidence That Customers Will Maintain Purchasing Volumes Through 2023

–PrimeRevenue Releases Report Offering the Supplier Perspective on Economic Disruptions–

Atlanta (July 25, 2023)–PrimeRevenue, the leading provider of working capital financial technology solutions, today released its report, Surviving Disruptions: Supplier Perspective on Economic Shifts in H1 2023. To get a clearer picture of how suppliers are faring in the current business climate, suppliers trading on the PrimeRevenue platform were recently surveyed to better understand their demand forecast, their biggest business challenges, and how helpful early payment programs like supply chain finance are impacting their business. The survey’s results are outlined in the newly published report.

“Over the last three years, suppliers have encountered prolific disruption and recalibration. Now, moving into the second half of the year, there are more reasons for optimism than there were just months ago

–though, for the foreseeable future, a great deal of uncertainty still remains,” said PJ Bain, CEO, PrimeRevenue. “Our newly released report paints a detailed picture of all the ways in which suppliers are viewing and navigating the months ahead, and the decisions they are making to remain resilient, disciplined and successful through the headwinds.”

Among the report’s findings:

• Business Demand Outlook: Business demand is strong. Well over half of suppliers (58.4%) are extremely or fairly confident their customers will maintain their current purchasing volumes with another 18.4% reporting they are moderately confident. (Upload Volumes are the measure of the total $ value of approved invoices uploaded by our Buyer clients and are representative of total B2B purchasing volumes. Upload Volume was down nearly 8% in June and 7.4% YTD, however the last two weeks of June saw an uptick in Upload Volumes).
• Top Challenges: Cash flow and cost-cutting are top business challenges for suppliers. Of the business challenges specified, suppliers said cost-cutting and negative impacts to cash flow is their biggest challenge in 2023 (26.1% and 26.5% respectively).
• Supply Chain Disruptions: Suppliers expect supply chain disruptions and delays to hold steady throughout 2023. More than half of the suppliers surveyed (62.7%) believe supply chain disruptions and delays will remain the same in 2023. Just over a quarter of respondents (25.3%) predict they will ease. Only 12% anticipate conditions worsening.
• Banking Crisis: Most suppliers are concerned–albeit not overly–about the U.S. regional banking crisis. Approximately 43% of suppliers said they were moderately concerned and 18.8% are fairly concerned. Only 10.1% of suppliers are extremely concerned.
• Early Payment Programs: Most suppliers surveyed are either fully utilizing early payment program participation to their advantage or are looking to expand participation. Of the suppliers surveyed, 26.3% expected the number of invoices to increase. Nearly 38% (37.7%) of suppliers expected the number of invoices to remain the same since they already submitted most invoices for early payment.

The full report–which includes additional data, insights and analysis–can be accessed here.

METHODOLOGY

Between Q1 & Q2 2023, a total of 1675 suppliers were surveyed.

About PrimeRevenue

PrimeRevenue’s supply chain finance solutions help organizations in 90+ countries optimize their working capital to efficiently fund strategic initiatives, gain a competitive advantage and strengthen relationships throughout the supply chain. As the leading provider of working capital financial technology solutions, PrimeRevenue’s diverse multi-funder platform processes more than USD$300 billion in payment transactions per year. The company is headquartered in Atlanta, with offices in London, Prague, Hong Kong and Melbourne. Additional information about PrimeRevenue can be found at www.primerevenue.com | Twitter: @primerevenue | LinkedIn: www.linkedin.com/company/primerevenue.